Price Level P₁ LRAS Y* AD Real GDP AS for Tools Fiscal Action NGO a. How does the short-run equilibrium compare to the initial equilibrium? The price level has (Click to select) and output has [(Click to select) b. What is the primary concern of policy makers under these conditions? O high unemployment O declining value of the dollar O high Inflation c. What policy action might the government take in order to improve economic conditions? (Click to select) fiscal policy by (Click to select)taxes and/or (Click to select)government purchases V

Price Level P₁ LRAS Y* AD Real GDP AS for Tools Fiscal Action NGO a. How does the short-run equilibrium compare to the initial equilibrium? The price level has (Click to select) and output has [(Click to select) b. What is the primary concern of policy makers under these conditions? O high unemployment O declining value of the dollar O high Inflation c. What policy action might the government take in order to improve economic conditions? (Click to select) fiscal policy by (Click to select)taxes and/or (Click to select)government purchases V

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5 k es Price Level 170 150 130 110 90 The Economy of Morin 70 460 480 500 520 54535,75 580 600 Real GDP AD AS a. If potential GDP (LAS) is $550, and the economy is presently in equilibrium, then there is a(n) [recessionary b. In order to close this gap aggregate demand must increase by $ billion. gap of $ billion. c. If every $1 change in government spending leads to a $4 change in aggregate demand, government spending must increase by $ billion.
01 10 CO xp 381 In the figure, the economy is at an equilibrium with real GDP of $20 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the curve shifts, because 0 0 0 0 0 A. aggregate demand; leftward; the money wage rate rises B. aggregate supply: rightward; the money wage rate falls OC. potential GDP; leftward; the money wage rate falls D. aggregate demand; rightward; the money wage rate falls OE. aggregate supply; leftward; the money wage rate rises 130- 120- 110- 100- Price level (GDP price Index, 2012 = 100) Potential GDP 90- AS AD 19.0 19.5 20.0 20.5 21.0 21.5 22.0 Real GDP (trillions of 2012 dollars) ✓ ✓ 5
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plz answer correct explain Aasp Dont answer by pen pepar
SRAS PL2 PL AD2 AD REAL GDP The Aggregate Demand Model shows an increase in Aggregate Demand or an increase in GDP. Which Fiscal Policy Action would cause this change O Raise Taxes & Cut Government Spending O Decrease Taxes & Government Spending O Increase Taxes & Government Spending O Cut Taxes and Increase Government Spending PRICE LEVEL
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An economy is currently in a short-run equilibrium at point a. Which fiscal policy action would MOST likely bring the economy back to full employment output? LRAS SRAS Aggregate Price Level (P) Aggregate Output (Q) increase in taxes decrease in interest rates increase in government spending O increase in transfer payments ADO 自 ˊˋ
At the macroeconomic equilibrium, the economy has _______ gap, so to return to full employment _________. A. an inflationary; the money wage rate rises and aggregate supply increases B. a recessionary; the money wage rate falls and aggregate supply increases C. an inflationary; the money wage rate rises and aggregate supply decreases D. a recessionary; the money wage rate rises and aggregate supply decreases
Aggregate Supply and Aggregate Demand Real GDP Supplied Price $ 250 $ 500 $ 750 $1000 1500 3000 4500 4500 Real GDP Demanded 5500 5000 4500 4000 a. Plot the aggregate supply and aggregate demand curves on the same graph. b. State the equilibrium real GDP and price level. c. At the equilibrium GDP from part b, is the economy experiencing a recessionar gap? Explain why it is or is not experiencing a recessionary gap. d. State what happens to the nominal wages and the real wage in the short run phase of the aggregate supply.
If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? How does the economy move? If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. does not change; potential GDP line B. increases; aggregate supply curve C. decreases; potential GDP line D. does not change; aggregate supply curve Thanks!
he MPS in an economy is.4, government could shift the aggregate demand curve leftward by $50 billion at each price level by: Multiple Choice a)reducing government expenditures by $125 billion. b)reducing government expenditures by $20 billion. c)increasing taxes by $50 billion. d)increasing taxes by $250 billion.